What is a Singapore offshore entity?
- An offshore company in Singapore can also be referred to as a non resident company or a paper company;
- A non resident business formation in Singapore is legally tax exempt if certain conditions are met including i) no business conducted in the country ii) no banking within the country and iii) the company’s legal control is outside the country. There are other minor conditions too; so we recommend that you consult with Healy Consultants to accurately and completely meet all the business regulations. This way, you can incorporate a tax free non-resident company in Singapore while still complying with all the applicable local tax laws;
- A non resident company setup is, also, exempt of i) capital gains tax ii) withholding tax iii) value added tax iv) sales tax and v) accumulated earnings tax;
- Our firm legally registers non resident companies in Singapore supported by i) a business bank account in Indonesia, Malaysia or Vietnam and ii) a business address in Singapore. We also make sure that the business bank account is with one of the top five banks in the world;
- Offshore companies, if properly structured, benefits from the country’s 69 double taxation treaties which minimize withholding tax on payments abroad;
- Incorporation of an offshore company in Singapore can be completed within one week with a share capital of only US $1. Plus, only one shareholder and one director will be required and they will not be required to travel to complete the engagement;
- Offshore company information in Singapore like capital structure and shareholder & director details are publically accessible through the ACRA website. Although this does affect individual privacy, but it also increases the transparency and reputation of Singapore’s offshore solutions. We will assist our Clients with this matter.
Table of Comparison between onshore and offshore entities
Singapore onshore company
Singapore offshore company
|Incorporation period||1 week||1 week|
|Shelf companies allowed||Yes||Yes|
|Minimum directors allowed||1||1|
|Minimum share capital||US$1||US$1|
|Corporate tax rate payable||16.50%||0%|
|Bearer shares allowed||No||No|
|Wholly foreign owned company||Yes||Yes|
|Public register available||Yes||Yes|
|Annual accounting and tax obligations||Yes||Yes|
|Corporate directors allowed||No||No|
|Singapore resident company secretary required||Yes||Yes|
|Type of company||LLC||LLC|
|Singapore bank account allowed||Yes||No|
|Can buy Singapore property||Yes||No|
|Can rent an office||Yes||No|
|Can conduct business within Singapore||Yes||No|
|Can hire staff in Singapore||Yes||No|
|Annual license renewal||Yes||Yes|
|Singapore national director or shareholder required||No||No|
|Allowed to own shares in Singapore companies||No||No|
|May own yachts registered in Singapore||Yes||Yes|
|Healy Consultants company incorporation fee||US$2,100||US$2,100|
Uses of an offshore company
- An offshore entity in Singapore can conduct international trading through a legally tax exempt structure while looking good to Clients, investors, suppliers, banks and Governments;
- Corporate Clients can use Singapore offshore solutions to conduct global business while being domiciled in a reputable country of strong laws and stable government. Singapore i) supports international arbitration ii) boasts strong contract law iii) houses laws that protect business investments and iv) is a signatory to WIPO;
- Offshore company registration will allow the entrepreneurs to take advantage of the strong legal system to house global trademarks and intellectual property;
- A non resident business formation has the legal right to sponsor local employment and residence visas;
- A Singapore offshore business setup can be incorporated as a regional or global holding company and receive regular investment income including dividends and management fees;
- Some of our Clients support their companies with other off-shore services like i) offshore merchant account for tax exempt online credit card sales and ii) offshore corporate brokerage account to trade global securities while enjoying legal tax exemption;
- Our Clients, generally, incorporate Singapore offshore companies for i) international trading ii) holding companies iii) shipping companies iv) owning real estate v) owning copyright and patents and vi) for international consulting services.
Singapore offshore banking options
- To enjoy legal tax exemption, the offshore bank account cannot be located in Singapore;
- Our firm will assist our Clients in opening an international corporate bank account with one of the top 10 global banks in either Indonesia or Malaysia or Vietnam or Australia or USA or Germany. Refer to this link to view a table of Singapore offshore corporate banking options;
Offshore company fees and timelines
Offshore business incorporation costs in Singapore in year 1 amount to US$2,100 and annual company costs in year 2 and thereafter amount to US$1,500. Average engagement fees approximate US$8,800 including i) offshore Singapore company formation ii) opening an offshore corporate banking account and iii) Singapore resident director services. Press this tab to view a sample draft invoice for a Singapore offshore entity:
Annual administrative obligations
- Singapore tax law mandates that all annual unaudited financial statements be submitted to IRAS, together with the tax return. Our firm assists our Clients efficiently and effectively complete this statutory Singapore accounting obligation;
- An offshore business setup in Singapore must lodge an annual return confirming relevant details of the company for the public register including names and addresses of all directors, address of principal place of business and details of all share-holdings;
- The company must appoint a resident company secretary and a resident director and maintain a legal registered Singapore offshore business address. The majority of our Clients appoint our firm to fill these legal positions;
- The process of deregistering a Singapore based offshore formation is dictated by the Government and will take at least 6 months. Our fee to manage company de-registration is US$1450. During this 6 month period, it is mandatory to maintain the resident company secretary and the legally registered office.
The 10 steps to incorporating an offshore company in Singapore
- Singapore company law does not permit non-resident individuals to self-register an offshore entity. Hence, the Client must engage Healy Consultants to help them in the process;
- Our Client i) settles Healy Consultant’s fees ii) signs and returns our engagement letter and iii) provides us all the required due diligence documents;
- Prior to incorporating an offshore entity, Healy Consultants i) agrees our client’s goals ii) engineers the optimum legal corporate structure iii) advises on business banking and cash flow considerations including bank account location;
- Healy Consultants drafts a detailed engagement project plan, mapping out weekly engagement milestones, optimizing engagement transparency, setting Client expectations;
- Our Client agrees the exact corporate structure and corporate bank account location. Immediately thereafter, Healy Consultants prepares the incorporation forms and legal registered office agreement for client’s signature;
- Healy Consultants Client Relationship Officer (CRO) legally incorporates the offshore company through Accounting and Corporate Regulatory Authority (ACRA). Immediately, the CRO emails our Client the certificate of incorporation;
- Next, Healy Consultants provides our client with a resident secretary and resident director for their offshore company which is a legal requirement under s126 of the Singapore company law 1992;
- On behalf of our Client, Healy Consultants liaises with the bank officers for opening of our Client’s corporate banking account including i) prepares a business plan ii) due diligence documents and iii) bank forms. Healy Consultants recommends a corporate bank account with our Swiss private bank and their multiple office locations globally;
- Following the receipt of signed bank forms from our client, within two weeks Healy Consultants receives the confirmation of the corporate bank account opening;
- Following engagement completion, Healy Consultants couriers a full company kit to our Client, including original corporate documents, unopened bank correspondence and a client feedback survey.
Frequently Asked Questions
How do I form a Singapore entity?
Healy Consultants will register your firm with the Accounting and Corporate Regulatory Authority (ACRA) and then courier you the certificate of incorporation. We will also open the corporate bank account for your company.
Can my offshore firm be wholly foreign owned?
Yes. Your company can be wholly foreign owned.
Will your firm provide resident director and company secretary services?
Yes. Healy Consultant’s resident director services cost US $1,950 annually while our company secretary and local business address services cost US $1,100.
How long does it take to setup the offshore entity and the bank account?
An offshore firm can be setup in one week. Opening a bank account will require 2 – 3 weeks.
Where should I open my off-shore business bank account?
For optimum business solutions, we recommend our Client open an account in either SCB Malaysia or SCB Indonesia.
Will I be required to apply for business licence to form a tax free company?
No. If your business activity requires a licence, then that company cannot be considered an offshore entity. Consequently, such as entity cannot be legally tax exempt.
Who will help my offshore business formation with accounting requirements?
Our firm is specialist in bookkeeping and accounting services. We will your firm prepare annual financial statements.
What business visa are available?
Singapore work visa applicable are: i) Employment Pass for the firm’s employees and ii) EntrePass for the entrepreneur.
Will my offshore company be tax exempt?
Yes, if your company does not conduct any local business it will be legally tax exempt.
Does my offshore business setup benefit from Singapore’s double taxation treaties?
No. Since, your company will already be non resident, it can not benefit under the double taxation treaties.
Why do I need a Singapore offshore entity?
An offshore entity is a tax free non-resident company which can be used for i) international trading ii) holding companies iii) shipping companies iv) owning real estate v) owning copyrights and patents and vi) international consulting services.
View the complete guide to Singapore company incorporation.